Microsoft shares touch a fresh all-time high on Monday, tech giant to acquire GitHub for $7.5 billion

June 5, 2018 9:49 am

According to a statement by Microsoft Corporation (MSFT) on Monday, it intends to acquire GitHub Inc, a privately held website that provides coding tools for developers, in an all-stock deal estimated at $7.5 billion, as the tech company seeks to strengthen its cloud computing business.

Microsoft shares closed higher for a second consecutive trading session on Monday. The stock went up 0.87% ($0.88) to $101.67, after touching an intraday high at $101.85 and also a fresh all-time high.

Shares of Microsoft Corporation have surged 18.86% so far in 2018 compared with a 2.74% gain for the underlying index, S&P 500 (SPX).

In 2017, Microsoft’s stock rose 37.66%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

After the deal is finalized, by the end of 2018, GitHub is to become a part of Microsoft Corp’s Intelligent Cloud unit.

The deal is expected to boost Microsoft’s operating income in fiscal 2020, while cutting its earnings per share by less than 1% during the upcoming two years.

With its over 28 million users, GitHub is considered as the largest code host worldwide.

“Microsoft’s purchase of GitHub could provide tools for users to develop applications on its Azure Cloud platform”, Ivan Feinseth, Chief Investment Officer at Tigress Financial Partners, was quoted as saying by Reuters.

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Microsoft’s stock price, have a median target of $114.00, with a high estimate of $130.00 and a low estimate of $75.00. The median estimate is a 12.13% surge compared to the closing price of $101.67 on June 4th.

The same media also reported that 27 out of 33 surveyed investment analysts had rated Microsoft’s stock as “Buy”, while 4 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Microsoft stock are presented as follows:

R1 – $101.76
R2 – $101.85
R3 (Range Resistance – Sell) – $101.94
R4 (Long Breakout) – $102.21
R5 (Breakout Target 1) – $102.53
R6 (Breakout Target 2) – $102.67

S1 – $101.58
S2 – $101.49
S3 (Range Support – Buy) – $101.40
S4 (Short Breakout) – $101.13
S5 (Breakout Target 1) – $100.81
S6 (Breakout Target 2) – $100.67

By using the traditional method of calculation, the weekly levels of importance for Microsoft Corporation (MSFT) are presented as follows:

Central Pivot Point – $99.63
R1 – $102.02
R2 – $103.26
R3 – $105.65
R4 – $108.05

S1 – $98.39
S2 – $96.00
S3 – $94.76
S4 – $93.53

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